Any producer who does not receive payment for milk sold or delivered to a handler in the manner required by Section 1051.73 of the Federal Milk Marketing Order, or, in the case of nonpooled or Grade B milk, as required by the contract, shall immediately notify the secretary. Failure to notify the secretary within two business days of nonperformance of electronic fund transfer payments shall result in a one-day reduction in total days covered for each day of failure to notify the secretary of nonpayment.

The secretary shall, upon the secretary’s own motion or upon information from a producer, producer representative, or any other person, immediately take whatever action is necessary to determine whether a payment default has occurred.

If the secretary determines that a payment default has occurred, the secretary shall notify the handler that it has one business day from receipt of the notification to correct the payment deficiency. If the secretary determines that a payment default has not occurred, the secretary shall so notify the handler and complaining party.

When a payment default has occurred, which was not corrected within one business day after notification, the secretary shall issue a notice pursuant to Section 62582 which identifies the defaulting handler and informs producers of the provisions of Sections 62583 and 62584. The notice shall also inform producers of their rights to file claims pursuant to Article 7 (commencing with Section 62620).